March 20, 2011
The Forex Language – Separated By Terminology
God came down from the heavens to see the Tower of Babel, being unhappy with what he saw God separated the people using foreign language as the barrier. Then here comes terminology another language used amongst the masses of foreign exchange. A language easily used within the Forex community which leaves the non-Forex citizens clueless.
I frolicked in to learn the terminology of the Forex player’s world of language and indeed it looked like babble. But for the foreign exchange inhabitants it all makes perfect sense. With shortened phrases, acronyms, and idioms to explain what they need and want during the speeches of exchanges and trades, it is only a language which the traders know best. And it is imperative for any new or experienced Forex civilian to know and be comfortable with the language.
Without any question, not being educated and fully prepped in this speech to converse with fellow speakers you will be left in the dust. Confused by the terminology or not being aware of sayings they use, you can forget about embarking on the career of a Forex trader all together. At lease for now.
Forex is the leading financial market of the world and trades all global currencies in real time. To shine in any way in the Forex market the basic language is a must.
Basic terminology
The basic terminology of the Forex globe must be known to get by in the utmost way.
The word bullish refers to one having a general tendency to trade on the short side of a currency pair with the belief that pair will increase in price.
Bearish, if you are bearish you will have a general tendency to trade on the short side of a currency pair and believe that pair will decrease in price.
Going long refers to buying a currency pair with the hope that the price will go up.
Going short means that you sell a currency that is not yet owned by you, the trader. The hope here is that the price will go down and you can but the currency pair back at a lower price than you sold it at.
5) Pip- a popular word meaning the smallest price change a currency pair can make. Generally it is equal to 10USD on full size lots of 100,000.
The offering of information to the seller on the variety of prices being offered is Range. It also the highest and lowest prices of the currencies.
A full range of definitions for the Forex language is offered on tons of websites and dictionaries. It is crucial to be prepped on the terminology needed for conversation if you are interested in a Forex trading career. Otherwise you will find yourself a lost soul roaming around, incapable of speaking to any fellow Forex inhabitants. Of course you don’t want that.
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